Welcome to your Grade 12 Economics chapter 1
After carefully reading the following 30 questions, choose the correct answer.
1.
Which branch of economics focuses on the actions of individual agents such as households and businesses?
2.
What is the term for the total market value of all final goods and services produced within a country during a year?
3.
How is Gross National Product (GNP) calculated in relation to Gross Domestic Product (GDP)?
4.
Which approach to measuring GDP involves summing up personal consumption, private investment, government purchases, and net exports?
5.
What is the difference between the export and import of goods and services for a country called?
6.
Which school of thought was the predominant economic philosophy until the Great Depression?
7.
Which form of unemployment is most largely impacted by technological change?
8.
What term refers to the recurrent ups and downs in the level of economic activity?
9.
According to the text, what is macroeconomics primarily concerned with forecasting?
10.
Which group argued that monetary policy, rather than fiscal policy, should be used to address macroeconomic problems?
11.
In a closed economy where there is no interaction with the rest of the world, what is the relationship between GNP and GDP?
12.
Which school of thought emphasizes wage and price rigidities due to menu costs and long-term contracts?
13.
What represents the "buying side" of the entire national economy?
14.
What is the term for the persistent increase in the general price level of goods and services?
15.
Which of the following is considered a focus area of macroeconomics?
16.
Which approach to GDP adds up all incomes accruing to factors of production?
17.
Which school of thought is more useful for analyzing macroeconomics in the short run?
18.
What is defined as the measure of market value of all final goods and services produced by domestically owned factors of production irrespective of location?
19.
Which macroeconomic goal aims to ensure that the gap between the rich and the poor is not too wide?
20.
What does the acronym NFI stand for in the context of national income accounting?
21.
Which macroeconomic challenge involves the study of the number of people who are willing and able to work but cannot find jobs?
22.
According to the text, macroeconomics looks at the economy as a:
23.
What is the first step towards understanding the macroeconomy mentioned in the text?
24.
Which approach to GDP calculation avoids double counting by only including the value of final goods?
25.
Which sector's spending is NOT mentioned as a part of Aggregate Demand?
26.
What does the term PIP stand for in the context of new classical economics?
27.
Which wave of New Keynesian economics is more micro-based and stresses coordination failures?
28.
Macroeconomic performance is determined by variables like the unemployment rate, inflation, and:
29.
What is the term for the income received from abroad by a country's citizens less the income paid to foreigners?
30.
Which concept refers to the total amount of money all sections are ready to spend on the purchase of goods and services?
